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Weekly market review: Indices scale new highs on renewed vigour; uptrend may persist

01:20 PM Sep 18, 2021 | Gaurav Udani

Nifty, Bank Nifty and broader markets in general have broken yet another all-time high, and we maintain our bullish stance and we feel that markets will only break higher levels on the upside.

If you see, we have seen great movement on the upside in stocks across sectors and industries.

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IT, FMCG and specially the Banking sector have given superior returns in the past 1 week.

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Nifty & Bank Nifty Outlook:

Both Nifty and Bank Nifty have returned good returns in the past 1 week and we expect the bullish sentiment and trend to continue.

Both Nifty and Bank Nifty have strong support zones near the 17,400 and 37000 levels which further pushes the case for a bullish week ahead

Nifty Bank
Nifty50

Nifty FMCG:

The FMCG sector has been going from strength to strength over the past 6-8 weeks now, it shows how investors are flocking to this sector in times of stretched valuations and so much uncertainty. We expect the bullish sentiment and trend to continue in this sector.

Nifty FMCG
Nifty IT

Just like the FMCG sector, the IT sector too has experienced windfall returns over the past 6-10 weeks and has broken a fresh all time high, this is one evergreen sector in our opinion providing great returns and more importantly stability to the portfolio.

NIFTY Pharma & Nifty Auto

Just like last week, we maintain a mildly bearish stance on both these indices as the charts look weak.

Derivative Outlook:

Nifty current month future closed with a premium of 2 points to its spot. Next month's future is trading at a premium of 28 points.

We saw open interest addition of nearly 1.20% in Nifty and considering the price action it clearly hints strong buying during the week.

Long Formation

Long Formation

The following stocks saw OI build up with a corresponding increase in price, suggesting a bullish sentiment

Short Formation

Short Formation

The following stocks saw OI build up with a corresponding decrease in price, suggesting a bearish sentiment

Top 5 recommendations for the next week

Escorts

ESCORTS had given the breakout from the previous two importance resistance level on 14TH Sep 21. After breakout now it is has retraced to its support level , which can be a good opportunity to go long.

Reliance

Reliance is trading near its previous resistence level , which will now act as a strong support. Therefore a good opportunity to initiate a long position.

CIPLA

Cipla has been consolidation after giving a breakout since quite some time now.It is around its support levels which suggests good positive momemtum is possible from here.

Colpal

COLPAL is in the consolidation zone after a good move from previous support levels. Any sustainable move above 1755 levels will have a good buying opportunity.

TECH MAHINDRA

TECHM is in the strong uptrend. After a good rally it is trading in the consolidation zone. Any sustainable breakout above consolidation zone we may see another upside rally.

(Gaurav Udani is Founder & CEO of Thincredblu Securities. He tweets @Udanii)

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